Sensex, Nifty Likely To See Cautious Start On Weak Global Cues

(RTTNews) - Indian shares are seen opening on a flat note Friday as investors weigh weak global cues against a sharp fall in oil prices overnight.

Crude prices were little changed in early Asian trade after plunging almost $4 a barrel to four-month lows on Thursday on growing concerns about oversupply and waning demand in the U.S. and China.

Shares of banks and NBFC's could be in focus today after the Reserve Bank of India (RBI) raised risk weights on consumption loans, credit card exposures and loans to non-bank financiers by 25 percentage points each.

In another development, the RBI said in its latest monthly bulletin that there were "miles to go" to go on the inflation front and that India is "not out of the woods yet".

India's GDP growth prospects should remain strong over the medium term, with GDP expanding 6-7.1 percent annually in fiscal years 2024-2026, S&P Global Ratings said in a report.

Benchmark indexes Sensex and Nifty rose about half a percent each on Thursday to extend gains for a second straight session, with IT stocks leading the surge.

The rupee ended 9 paise lower at 83.23 against the dollar, pressured by a recovery in U.S. Treasury yields.

Asian markets traded lower this morning while oil headed for a fourth weekly loss after sinking into a bear market. Gold edged up as U.S. Treasury yields eased alongside a fall in the dollar.

U.S. stocks ended narrowly mixed overnight as investors digested a string of weak economic data and disappointing forecasts from Cisco and Walmart.

A measure of U.S. jobless claims rose to a three-month high last week, retail sales fell for the first time in seven months in October and industrial production fell more than expected in the month, adding to expectations for Fed rate cuts.

The Dow slipped 0.1 percent to snap a four-day winning streak while the tech-heavy Nasdaq Composite and the S&P 500 both finished marginally higher.

European stocks fell broadly on Thursday following three days of gains on softer-than-expected U.S. inflation readings. The pan European STOXX 600 dropped 0.7 percent.

The German DAX inched up 0.2 percent while France's CAC 40 shed 0.6 percent and the U.K.'s FTSE 100 lost 1 percent.